Money: These Are the Countries Most at Risk of Housing Bubbles - PressFrom - Canada
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MoneyThese Are the Countries Most at Risk of Housing Bubbles

15:20  13 july  2019
15:20  13 july  2019 Source:   msn.com

Toronto New Home Sales Soar 94% To Highest Level In 17 Years

Toronto New Home Sales Soar 94% To Highest Level In 17 Years Greater Toronto’s housing market has had a stellar spring, but it’s unclear if this is the start of another housing boom in the city, or just panic-buying ahead of a new government policy that some expect will push up house prices. New home sales in Greater Toronto soared by 94 per cent in May, compared to the same month a year earlier, according to data from the Building Industry and Land Development Association (BILD GTA). That’s well above

Seeking to build a “ housing bubble dashboard,” economist Niraj Shah studied ratios of house prices to rent and income as well as inflation-adjusted prices “There’s a risk that a global round of monetary easing may fuel housing bubbles ,” said Shah. “While central bankers are focused on avoiding a

Hong Kong and London are the cities most at risk of a housing bubble as real estate begins to look overvalued, the bank warns. " House prices in these cities are vulnerable to a sharp correction should interest rates rise," it said. In Australia, Saxo Capital Asia macro strategist Kay Van-Petersen says the

These Are the Countries Most at Risk of Housing Bubbles Aerial view of the Toronto Skyline looking south east. (Picture for representation)

(Bloomberg) -- Canada and New Zealand are the most vulnerable economies to a correction in house prices, with Australia and the U.K. also drawing concern, according to new research from Bloomberg Economics.

Seeking to build a “housing bubble dashboard,” economist Niraj Shah studied ratios of house prices to rent and income as well as inflation-adjusted prices and household credit.

The results showed that Canada and New Zealand seem to be on the most unsustainable path, with the cost of housing compared with wages the highest in the world in both countries. Australia, Norway, Sweden and the U.K. also raise alarm bells, Shah said.

Montreal housing shortage leaves families scrambling on moving day eve

Montreal housing shortage leaves families scrambling on moving day eve Close to 130 households still don't have a place to live before moving day, July 1, housing rights advocates say.

Stockholmers are the third most likely to experience a housing bubble in their city, according to a key ranking It examined 18 cities around the world and concluded that six of them were at risk of a housing bubble . House prices in these cities increased by almost 50% on avg. since 2011 More

Hong Kong is the city most at risk of a property bubble , according to a ranking from UBS Group Investors “should remain selective within housing markets in bubble - risk territory such as Hong Choose your reason below and click on the Report button. This will alert our moderators to take action.

Policy makers may be acting already. Canada’s government has introduced a tax on foreign buyers, while overseas purchases have been banned in New Zealand. The next challenge will be whether prices keep rising as the Federal Reserve and other central banks get ready to cut interest rates.

“There’s a risk that a global round of monetary easing may fuel housing bubbles,” said Shah. “While central bankers are focused on avoiding a global economic downturn, looser monetary policy could sow the seeds of the next crisis.”

House prices have only just returned to the peak they reached prior to the last period of financial turmoil, according to an index consisting of 57 economies.

To contact the reporter on this story: Simon Kennedy in London at [email protected]

To contact the editors responsible for this story: Stephanie Flanders at [email protected], Zoe Schneeweiss, Brian Swint

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

Vaughn Palmer: Spike in housing starts boosts NDP, but could be just a spike, analyst warns.
VICTORIA — When Finance Minister Carole James met with the legislature’s committee on finance last month, she suggested that B.C. was headed for a large and unexpected jump in housing starts this year. “As of April,” she advised the committee, the province appeared to be on track for “51,093 housing starts, which is a very strong number.” A very strong number was putting it mildly. James’s provincial budget, tabled in February, forecast that housing starts would decline from 41,000 last year to 34,000 this year, a 17 per cent drop.

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